The Real Effects of Financial Shocks: Evidence from Exogenous Changes in Analyst Coverage

Autor:	Ambrus Kecskes, François Derrien
Rok vydání:	2013
Předmět:	Finance Economics and Econometrics Natural experiment ComputingMilieux_THECOMPUTINGPROFESSION business.industry Causal effect Investment (macroeconomics) Difference in differences Information asymmetry Cost of capital Accounting Cash holdings Business
Zdroj:	The Journal of Finance. 68:1407-1440
ISSN:	0022-1082
DOI:	10.1111/jofi.12042
Popis:	We study the causal effects of analyst coverage on corporate investment and financing policies. We hypothesize that a decrease in analyst coverage increases information asymmetry and thus increases the cost of capital; as a result, firms decrease their investment and financing. We use broker closures and broker mergers to identify changes in analyst coverage that are exogenous to corporate policies. Using a difference-in-differences approach, we find that firms that lose an analyst decrease their investment and financing by 1.9% and 2.0% of total assets, respectively, compared to similar firms that do not lose an analyst.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::2391d1b17f1f1a29c9d8322c8e4f22b4 https://doi.org/10.1111/jofi.12042 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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